Flutter Entertainment (FLUT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 17% year-over-year to $4,304 million, driven by international segment expansion, M&A, and favorable sports results, with iGaming delivering 28% growth.

• Net income declined 38% to $209 million, with margin dropping to 4.9% from 9.1%, mainly due to higher interest, depreciation, and amortization from acquisitions and increased tax rates.

• Adjusted EBITDA increased 2% to $631 million, but margin decreased to 14.7% from 16.8%.

• Management restructuring announced, including Amy Howe's departure and expanded roles for Dan Taylor and Christian Genetski to strengthen US and international leadership.

• Review of London Stock Exchange listing underway, with possible delisting in Q2 2026.

Financial highlights

• Net income was $209 million, down $126 million year-over-year, with net income margin at 4.9%; adjusted EPS declined 23% to $1.22.

• Net cash from operating activities rose 76% to $330 million, driven by positive player funds movement.

• Free cash flow (excluding player funds) declined by 46% to $123 million due to higher capital expenditure.

• Cost of sales increased 26% to $2,467 million, raising cost of sales as a percentage of revenue to 57%.

• Interest expense rose to $156 million, reflecting new debt issuances.

Outlook and guidance

• Full-year 2026 guidance: group revenue expected at $18.305 billion (12% YoY growth) and adjusted EBITDA at $2.865 billion (1% YoY growth), with majority of profit expected in H2.

• US revenue and adjusted EBITDA expected at $7.795 billion and $0.97 billion; international at $10.51 billion and $2.205 billion.

• Leverage at 3.7x at Q1 end, expected to rise through Q2/Q3 before declining in Q4, targeting 2–2.5x medium term.

• Capital expenditure guidance for 2026 remains unchanged.

• Regulatory changes in key markets (UK, Ireland, Brazil, India) may impact future results.